What is the current price dynamics for silver?

What is the specificity of investing in precious metals? In which cases will it be beneficial, and in which cases - not? These and other similar issues are of interest to many of our compatriots. In particular, the current dynamics of silver prices and prospects for its future course. Let's try to weigh the pros and cons of investing in a given metal.

What do experts say?

Analysts warn that the dynamics of rising prices for silver is associated with a high level of risk, as the volatility of the price of this metal is very high. It should be noted that the volume of supply of this metal, in comparison with traditional gold, is several times smaller, and the average spread of the value varies in the range of 25-35% (in gold it does not exceed 5%). Investing in silver - an event rather risky. However, where there is a lot of volatility, you can not only lose, but also decently earn. With a large number of banks, it costs a lot less than gold, and if you follow its course and take into account the specifics of its behavior with respect to the dynamics of major currencies, then investment in this metal will be a fairly profitable investment.

Prices for silver: the dynamics of 2013

Let's start with the facts. If you look at the graph of this metal in the current year, then at first glance it may seem disappointing. Since the end of January, when the maximum price several times exceeded the mark of $ 32 per ounce, the dynamics of silver prices until the end of June this year was directed downward. On June 23, the value of this metal fell to $ 18.18 per ounce. After reaching this minimum, the price dynamics for silver took a course to the north. This trend did not last long, starting from September 19 (having broken away from the mark of $ 23.44), the value of metal began to decline again. And on December 4 the price of silver dropped to $ 18.89 per ounce, after which it went up again. How long? Everything depends on how the world industry will develop in the coming years, as well as on the stability in the foreign exchange market.

Prospects

At the end of November, UBS analysts worsened their forecast for gold and silver. In their view, there are no catalysts for the growth of these precious metals in the foreseeable future. Experts believe that in December of this year, the price of silver will fluctuate around $ 19 per ounce, and in the next three months it will grow to $ 16 per ounce. Does this mean that investing in silver is unprofitable now? The answer depends on how long you plan to invest. It should be noted that, since the 19th century, silver has been used extensively in industry, which seriously affects the level of its reserves in nature. Only 113 years ago they were 12 billion ounces. In 2007, their level fell to 300 million, and if the current rate of consumption of this metal remains unchanged, by 2020 all the silver reserves may finally dry out. That is why in the next decade the dynamics of prices for silver can show a sharp increase. Thus, with a long-term investment, investing in this precious metal will be profitable, but it is worth waiting a few months to be sure that the downward trend has come to an end and has again acquired a positive momentum.